CNBC Investing Club: Cramer’s Morning Take on Amazon 5/5/26

SPEAKER_1 (0:00)

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Jim Cramer (1:03)

Jim Cramer here to share a short preview of my take on the market from today's members only CNBC Investing Club morning meeting. Join the club for full access to the morning meeting every day at 1020 a.m. Visit cnbc.com morning take to sign up today. That's one word, morning take.

I think the most important thing is that there's a near-term profit coming. I think a lot of the naysayers are either do-mers, people who believe that we're all going to be working for machines, or people who think that there's no payoff. Now, I think that those people were not inside where I was. They didn't see the things that I did. They don't recognize that the payoff is imminent, and that if you think it's going to be far out, then you're really going to end up not spending. And if you're not going to spend, you're done.

And I think that Alphabet understands you have to spend. I'm not sure Microsoft understands. I'm not sure Meta understands, because it doesn't have a cloud. But Amazon understands more than anyone, which is why this stock is, after being dormant for a long time, is going to run for a long time.

SPEAKER_5 (2:14)

Yeah, that's interesting, because we are seeing a boost to revenue from their AI spend, but he's talking about monetizing the big cash outlay for a long period of time. I mean, 30 years, they could monetize some of these data centers for, which will be great for margins, great for free cash flow over this long term horizon.

Jim Cramer (2:34)

Well, Project Grineer, which is huge, is being viewed as being not a cost, but it's being viewed as a profit. It's almost like when you learned accounting, where do you put this thing? I mean, it's capital improvement that is then leading to fantastic return on investment. And I think a lot of people just say, you know what, you build it, they won't come. I mean, all the kind of... There's a lot of anti-empirical nonsense about the web.

Andy Jassy is not a, hey, let's give it a shot guy. There isn't anything about him that's nonchalant. There isn't anything about him that is anecdotal. It is hardcore empirical data that says, we need to spend the money to meet the demand for Amazon Web Services. I felt so good because a lot of the discussion is almost from outer space.

I don't want to denigrate everybody. I do think that NVIDIA understood this, but obviously NVIDIA I think can't run when Amazon is talking about how it's going to come after NVIDIA to some degree. But the idea that they are just spending money for the sake of spending money. I left thinking, I wish they could spend more money. I actually said that one time to David. I said, why don't you spend 250 million? He said, no, we want to stay somewhat within our cash flow.

SPEAKER_3 (3:52)

All opinions expressed by Jim Cramer on this podcast and in connection with the CNBC Investing Club are solely Cramer's opinions and do not reflect the opinions of CNBC or its parent company or affiliates and may have been previously disseminated by Cramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Cramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment or strategy. To view the full CNBC Investing Club disclaimer, please visit cnbc.com/investingclubdisclaimer.

SPEAKER_1 (4:24)

Courage.

Jim Cramer (4:25)